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2009 Baton Rouge Industrial Market Overview

2009 Baton Rouge Industrial Market Overview. Presented by: Todd E. Pevey, MIE Properties - LA. April 15 th , 2010. Industrial Committee. Todd Pevey, MPA, MIE Properties, Co-Chairman Marc Barker, CCIM, SIOR, NAI Latter & Blum, Co-Chairman

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2009 Baton Rouge Industrial Market Overview

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  1. 2009 Baton Rouge Industrial Market Overview Presented by: Todd E. Pevey, MIE Properties - LA April 15th, 2010
  2. Industrial Committee Todd Pevey, MPA, MIE Properties, Co-Chairman Marc Barker, CCIM, SIOR, NAI Latter & Blum, Co-Chairman Branden Barker, CPM, CCIM Latter & Blum Property Management Brent Garrett, CCIM, SIOR Beau Box Commercial Real Estate Scot Guidry, CCIM, Sealy & Falgoust Real Estate Jonathan Starns, Donnie Jarreau Real Estate Walt Ketchings, NAI Latter & Blum
  3. INDUSTRIAL COMMITTEE MEMBERS
  4. LOOKING FOR SCRAPS…
  5. INVENTORY & ABSORPTION
  6. INVENTORY & ABSORPTION
  7. YEAR-TO-YEAR CHANGES TOINDUSTRIAL INVENTORY DATA
  8. EBR PARISH BUILDING PERMITS
  9. INDUSTRIAL PERMITS
  10. LEASE RATES
  11. NOTICEABLE TRENDS Consolidations & Mergers – contributing to the increasing vacancy rates. Subleases for All or a Portion of spaces becoming more prevalent. Not a lot of companies Relocating…but most of those that move are downsizing & attempting to decrease their monthly rent. Businesses with Leases expiring in near-term are renegotiating Lease terms now - BEFORE economy improves! Many businesses “sitting on their hands” with decisions until they see improvement in the economy…Resulting in short term leases & extensions by many companies. Many Tenants posturing as though they are insolvent or near bankruptcy; hiring national consultants (many from NYC) to: 1) negotiate a Lease-Restructure or 2) negotiate buyouts for cents on the dollar.
  12. NOTICEABLE TRENDS CONT’D No New Speculative Construction! Very little construction of any kind. Many of the construction permits in 2009 are for remodels in owner-occupied buildings. Financing for owner-occupied buildings is the most readily available. Banks shying away from speculative development and investment loans. Banks requiring Global Net Operating Income Analysis of borrowers. Still a LOT of Big Box space…
  13. NOTEWORTHY EVENTS Criterion’s New Plant Construction in West Baton Rouge Parish Nucor Steel Project On-Hold in St. James Parish Shintech Completing New Units in Iberville Parish New CO2 and Other Pipelines Construction in Region Loop Project Moves Forward – Very Slowly Celtic Media Centre and Region Have Big Movie Production Year 84 Lumber Closes Locations in Region No Takers On Ascension Eco. Dev. Corp. DeepwaterMegasite – YET
  14. NOTEWORTHY EVENTS CONT’D Placid Refining Completes Expansion in West Baton Rouge Pinnacle Entertainment Delays, Again, Construction Postponed Woman’s Hospital Project Gains Momentum Dow Jones Industrial Up in 2009 SNF Purchases 800 Acres for New Iberville Parish Plant Project Financing Still Difficult Local Companies Cut Jobs
  15. FORECAST FOR 2010
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